Saudi Arabia is advocating for OPEC+ to implement its next oil production increase ahead of its originally scheduled late 2026 date, which could restore 1.66 million barrels per day.
This proposal will be discussed during an OPEC+ video conference this weekend, following previous rollbacks of production cuts by the alliance.
News of the potential supply increase has already led to a decline in oil futures, with both Brent crude and West Texas Intermediate experiencing drops.
Saudi Arabia is pushing OPEC+ to fast-track the group’s next oil production increase, moving up a supply hike originally scheduled for late 2026. The proposal, first reported by Bloomberg, would restore as much as 1.66 million barrels per day of output currently held back under voluntary cuts.
The issue is set for debate during a video conference of OPEC+ ministers this weekend. Riyadh’s initiative comes after the alliance has already rolled back roughly 2.2 million bpd of reductions over the past five months, signaling a pivot from defending prices toward reclaiming market share.
News of the Saudi move immediately pressured futures. Brent crude slipped 2.07% to $65.60 per barrel as of 10:04 a.m. ET on Friday, while the U.S. benchmark, West Texas Intermediate (WTI) was trading down 2.25% at $62.05. The benchmarks are heading for their first weekly decline in three weeks amid growing concern that additional supply will tip the market into surplus.
The pressure was compounded by U.S. inventory data showing a 2.4-million-barrel build last week, defying expectations of a draw as refineries entered seasonal maintenance. Traders noted that stock builds in the United States could magnify the price impact of fresh OPEC+ volumes, particularly if demand growth slows into the fourth quarter.
The Saudi proposal follows weeks of speculation that the group could reopen talks on accelerating the supply path. Earlier this week, both Brent and WTI fell by about 2% on expectations that more barrels could return by October if consensus forms within the alliance.
The outcome of Sunday’s ministerial meeting will determine whether the remaining 1.66 million bpd is restored ahead of schedule, a decision that could reshape market balances through the end of the year.
By Michael Kern for Oilprice.com
More Top Reads From Oilprice.com
Back to homepage
